SABMiller plc (SABMiller) has been informed by Anheuser-Busch InBev SA/NV (AB InBev) that it has entered into an agreement to sell SABMiller’s 49% interest in its Chinese joint venture, China Resources Snow Breweries Limited (CR Snow), to China Resources Beer (Holdings) Co. Ltd. (CRB) for US$1.6 billion. CRB currently owns 51% of the joint venture.
The sale agreement is in line with AB InBev’s commitment to proactively address potential regulatory considerations relating to its recommended acquisition of SABMiller. The proposed transaction with CRB is conditional on, and expected to close in conjunction with, the completion of AB InBev’s acquisition of SABMiller. This is currently expected to occur in the second half of 2016.
In addition, the agreement with CRB is subject to any applicable regulatory approval in China, and AB InBev and CRB will work closely together through any such process.
Alan Clark, Chief Executive of SABMiller said: “Our CR Snow joint venture was established in 1994 and the Snow brand was developed in the same year. Since then, Snow has grown to become the world’s largest beer brand by volume, selling more than 100 million hectolitres last year. Since forming the joint venture we have enjoyed a mutually beneficial partnership with CRB and together we have achieved great things in the Chinese beer market over the last 22 years.”
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